Chrysler/GM Deal By Election Day (November 4)?
Date 2008/10/31 8:09:43 | Topic: Miscellaneous
|The Detroit Free Press is reporting on a consultant's report that there's a chance that a GM/Chrysler merger will be announced prior to the U.S. general election on Tuesday, November 4.|
The report states that announcing the deal prior to election day and the scheduled December plant holidays will save gobs of cash as well as ease the pain (of the company, not the workers, of course) of integrating the two companies - and laying off thousands of employees.
In addition, the article goes on to say that seven core Chrysler vehicles would survive the merger - including the Jeep Wrangler and Grand Cherokee.
After Tuesday, Election Day, the Bush administration officially enters a lame-duck transition period for the next president, which could change the political dynamics. Also, Rodriguez said, the faster a deal happens, the faster the changes can be made at plants during shutdowns scheduled for December.
“I just think it gets more costly,” as time goes by, she said.
News of discussions between GM and Chrysler broke about three weeks ago. The Free Press has reported that obtaining adequate financing remains a barrier to a deal. With Tuesday just days away, Rodriguez said it’s more likely that the two companies will reach an agreement in principal, or a framework, rather than announce a completed deal.
Key findings of Grant Thornton’s report are as follows:
• Seven core models are likely to survive: Dodge Ram, Dodge Caravan, Chrysler Town & Country, Dodge Charger, Dodge Caliber, Jeep Wrangler and Jeep Grand Cherokee.
• Half of Chrysler's 14 existing manufacturing facilities could close.
Be sure to check out the entire article - it's a good summary of what could happen following a merger.